Tag: commercial real estate

Reasons to Hire a Real Estate Attorney When Buying or Selling Commercial Property

Posted on April 24, 2023 by - Commercial Real Estate

commercial real estate attorney

Buying and selling commercial property is a complex process—yet many people are reluctant to hire a real estate attorney because they are worried about additional costs. In truth, the benefits of having a commercial real estate attorney far outweigh the costs. 

A skilled commercial real estate attorney can help you avoid costly mistakes, ensuring a smoother, less stressful transaction. But that’s just the start. Here are a few more reasons to hire a commercial real estate attorney when buying or selling commercial property.  

Protect Your Interests

Real estate attorneys have specialized knowledge and experience in dealing with the legalities surrounding commercial real estate transactions. Because of this, they can protect your interests, ensure that the contract terms are reasonable and that you receive a fair deal. Additionally, a real estate attorney can assist you with any issues that may arise following the purchase of your property, including environmental or structural problems. 

Identify Suspicious Terms

A real estate attorney’s expertise in commercial real estate transactions includes analyzing contracts and identifying suspicious terms or potential pitfalls that could harm their clients. They can also recognize zoning or environmental concerns that may impact the property, thus protecting their clients’ interests throughout the transaction process. 

Smoother Closing Transaction 

State laws vary, but even if your state does not require you to hire an attorney when closing on a property, we recommend it for a few reasons. First, an attorney can help prepare and review all documents and contracts to ensure they are accurate and compliant with laws and regulations. Second, an attorney can mediate between you and lenders, title companies, and real estate agents.  

Increase the Marketability of Your Property

Sellers also have much to gain by working with a real estate attorney. For example, suppose your property has a lien or structural issues. In that case, an attorney can negotiate with lienholders to reach a settlement or help the seller fix structural issues by connecting them with reputable contractors or engineers. 

Attorneys can also offer advice on how to disclose these issues to potential buyers in a way that does not discourage them from making an offer. 

Save Time

An experienced real estate attorney can also help buyers and sellers save time by handling legal issues related to the transaction, such as reviewing contracts, negotiating terms, and ensuring all necessary documents are properly completed and filed. 

This can help prevent delays and ensure a smoother, more efficient transaction process.  Additionally, if any legal issues or disputes arise during the transaction, the attorney can help resolve them quickly and efficiently, which can save time and ensure you avoid legal battles. 

Talk to a Real Estate Attorney

If you need legal assistance with buying or selling commercial property, including reviewing contracts, identifying potential pitfalls, and facilitating a smoother closing transaction, look no further than Hoffman & Forde. Our team of experienced real estate attorneys is perfectly suited to help you navigate the complexities of the commercial real estate market in San Diego, Los Angeles, or Orange County. Contact us today to see how we can protect your interests and ensure a successful transaction.

Do You Need a Lawyer for a Commercial Lease?

Posted on March 17, 2023 by - Commercial Real Estate

Do You Need a Lawyer for a Commercial Lease?

Residential leases are full of legally required safeguards to help keep them fair because everyone needs a home, and virtually no one hires an attorney to review their rental agreement. Commercial leases are an entirely different beast. The rules protecting home renters do not apply in the commercial context, as both parties are presumed to be “sophisticated” (i.e., they understand the law and the world of commercial real estate).

The good news is that this frees up both parties to negotiate almost all of the agreement’s terms, allowing for much greater flexibility. However, it does mean that commercial lease negotiations are generally more complex. For this reason, it is often a good idea to hire a commercial real estate attorney to help you. Here are a few reasons why.

Initial Negotiation

As mentioned above, most of the terms of a commercial lease are negotiable. This can be a good thing, as it allows you to reach an agreement that meets your specific needs, but to take advantage of this, you need to be aware of your options. Commonly negotiated terms include:

  • Property Taxes & Insurance – Depending on the type of lease, it’s not unheard of for renters to be responsible for not just the rent but also property taxes and insurance premiums. Of course, this is more advantageous for the landlord, but as with everything in negotiation, it can be used to obtain more favorable terms in other areas.
  • Maintenance Costs – This can cover everything from security to utilities, which can add up quickly. The renter can be responsible for some or all of these costs, and the lease should identify this.
  • Term Length – Commercial leases are typically of a much longer duration than residential leases, and it’s not uncommon to see leases that last five years or more. Longer leases usually mean lower rent, though they also mean higher potential costs if you want out early.
  • Competitor Clause – If you are a retailer or restaurant owner, you may want to restrict the landlord from leasing to competitors near your business.
  • Termination Clause – If you need to end the lease early, what happens should be clear. Are you responsible for paying the remainder of the lease? Can you sublet the space?

These and other important terms are all on the table during a commercial lease negotiation. Having an attorney who is familiar with all of your options can help you find the right balance.

Renegotiating Your Commercial Lease

If there’s one constant in business, it’s that things are constantly changing. The economy goes up or down, consumer trends shift, etc., which can affect your business. If you find yourself in a position where you need to lower costs, it may be possible to renegotiate your commercial lease. Of course, the landlord’s willingness to renegotiate will depend on the real estate market. Still, in general, landlords prefer the stability of a paying renter compared to the uncertainty of finding a new one.

Having an experienced real estate attorney can greatly help this situation. Not only do they understand the ins and outs of commercial leases, they can also relieve a lot of stress when needed.

Talk to a Commercial Real Estate Specialist

Our experienced team understands the Southern California real estate market and knows how to get the best deal for your business. Whether you are just starting or are looking to renegotiate, Hoffman & Forde can help put your business on the best footing possible. Schedule a consultation today to talk to one of our real estate specialists.